Nov 30, Colombo: Chairman of the Committee of Public Finance MP Dr. Harsha de Silva has instructed officials of the Ministry of Finance to submit an analytical report on the increase of the export levy as per the Inland Revenue (Amendment) Bill that is expected to be passed in Parliament.
The Chairman issued these directives when the Committee on Public Finance (COPF) met in Parliament recently (Nov. 28) and reviewed the Inland Revenue (Amendment) Bill.
The Committee also instructed the Ministry of Finance and the Department of Inland Revenue to indicate the expected revenue for each sector by increasing the tax of 14% to 30%.
Furthermore, the chairman of the committee informed to submit a detailed report on the amount of income obtained falling under the respective export sectors in consideration of the previous tax rates.
The committee pointed out that instead of short-term efforts to increase the government's income by raising export taxes, long-term action should be taken, and export taxes should be collected so as not to discourage exporters who bring dollars to the country. Therefore, the chairman of the committee said that the draft Bill should be considered pertaining to the lowering of the export tax percentage at the committee stage.
Furthermore, the proposed increase in personal income tax was also discussed at the Committee meeting held. The committee informed the officials to present a comparative analysis with the existing conditions of other countries in the region on this regard.
Thus, subject to the above instructions, the Inland Revenue (Amendment) Bill received the approval of the Committee on Public Finance.
The absence of a separate regulatory board related to casino regulation was also discussed at length.
Although the Casino Business (Regulation) Act No. 17 of 2010 exists to provide the necessary legal provisions for the casino business at present, it is not sufficient for regulatory activities including revenue recovery and therefore, a separate regulatory authority should be established under the said amendments was pointed out by the Committee.
Therefore, the committee informed the officials of the Ministry of Finance to submit an action plan as previously notified on the matter.
Minister Nalin Fernando, State Ministers Pramitha Bandara Tennakoon, Dr. Suren Raghavan, Dr. Seetha Arambepola, Members of Parliament Anura Priyadharshana Yapa, M. A. Sumanthiran, Chandima Weerakkody, Mayantha Dissanayake, Madhura Withanage and Prof. Ranjith Bandara were present at the Committee meeting held.